TSP funds post positive returns in June

By Amanda Palleschi

July 2, 2012

Thrift Savings Plan funds posted positive returns for June -- a marked improvement over the past several months, which ended mostly down.

All TSP funds finished June in the black, including the internationally invested I Fund, which rose more than 7 percent. The F Fund, invested in fixed-income bonds, and the G Fund, comprised of government-backed securities, were up 0.05 and 0.11 percent, respectively -- slightly slower growth than they saw in May. The F Fund has risen 7.53 percent in the past 12 months; the G Fund rose 1.81 percent in the past year.

The C and S funds also saw gains in June. The C Fund, invested in stocks on Standard & Poor’s 500 Index, gained 4.13 percent in June after finishing May nearly 6 percent in the red. The S Fund, invested in small and mid-size companies that track the Dow Jones Wilshire 4500 Index, posted a positive return of 3.25 percent, after finishing May nearly 7 percent in the red.

Although the funds finished strong by the end of June, they experienced fluctuations during the month due to the financial turmoil in Europe, according to TSP Advisory Board Director of External Affairs Kim Weaver. Stocks, particularly the I and C funds, did not start to rise until the last day of June, when markets surged as European leaders reached a compromise on providing an aid package, Weaver said.

TSP’s life-cycle funds also saw gains in June. The L Income Fund, intended for federal employees who have reached their target retirement date and have started withdrawing money, gained 1.04 percent and is up more than 2 percent over the past 12 months. The L 2020 was up 2.72 percent in June; the L2030 increased 3.32 percent; L 2040 rose 3.77 percent, and the L2050 finished June up 4.27 percent.

All the life-cycle funds, which are based on projected retirement dates, have posed positive returns during the past 12 months, except the L 2050, which is down 0.76 percent compared to a year ago.